U.S. EPA to Recommend Lower Biofuel Blending Mandates Below 2020 Levels -Sources

The EPA is expected to recommend to the White House lowering the nation’s biofuel blending mandates below 2020 levels, in what would be a blow to the biofuels industry, two sources familiar with the matter said Friday.

Photo Credit: Farm Journal
Photo Credit: Farm Journal
(Farm Journal)

The U.S. Environmental Protection Agency is expected to recommend to the White House lowering the nation’s biofuel blending mandates below 2020 levels, in what would be a blow to the biofuels industry, two sources familiar with the matter said on Friday.

The EPA is looking to align mandates with actual production levels, which have slumped during the coronavirus pandemic. The mandates determine the amount of biofuels that oil refiners must blend into their fuel mix.

The EPA did not comment for this article.

Under the U.S. Renewable Fuel Standard, oil refiners must blend billions of gallons of biofuels into the fuel mix, or buy tradable credits, known as RINs, from those that do. Refiners can also apply for exemptions to the mandates if they can prove the obligations would do them financial harm.

Mandates for 2021 have already been delayed by more than half a year because of the coronavirus pandemic.

RINs have slumped in the last two days on market speculation surrounding the mandates. Renewable fuel (D6) credits traded at $1.42 each on Friday, down from $1.50 in the previous session, traders said. Earlier this week, credits were trading above $1.60.

(Reporting by Stephanie Kelly; editing by Jonathan Oatis and Marguerita Choy)

AgWeb-Logo crop
Related Stories
Joe Kooima with Kooima Kooima Varilek says the cattle charts are looking more friendly after last week. While grains are disappointed in the lack of details from the China trade summit.
Grains recovered off the lows after USTR Jamieson Greer stated significant progress had been made with China, including on ag trade, and details would be released on Monday.
Varilek says the slowdown in slaughter tied to ICE raids has hurt producers leverage in the cash market and it has been reflected in northern bids.
Read Next
“Fed to the Wolves,” debuts Oct. 1, and its producers contend it reveals deep damage to agriculture and hunting in rural Minnesota and lack of action by state officials.
Get News Daily
Get Market Alerts
Get News & Markets App